Hey Traders,

Today, we’re diving into Chewy ($CHWY), which is showing some serious potential despite the broader market taking a hit. If you’re looking for a standout play, this one might be it! Let’s break down what makes this trade great. To Subscribe: https://go.trade-ideas.com/SHQ
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1. Earnings Catalyst: Driving the Action

Chewy just released their earnings, and the market is reacting positively. This earnings play has been one of the few bright spots on a tough day for longs. The reaction to positive earnings is exactly what we look for—a catalyst that gets traders excited and drives price action. It’s no surprise that CHWY has caught my eye, with the initial alert coming in at $28.35.

2. Technical Levels: Eyeing $30 and Beyond

Once the alert hit at $28.35, Chewy shot up, almost reaching $30 before pulling back a bit. If you’re a VWAP player like I am, this pullback offered a sweet spot to get in around a strong support level. The stock found its footing and is now making another run at $30.

When I took a step back and looked at the weekly chart, I noticed that $30 is a key level—there’s definitely room for a move higher if we can break through this resistance. While I’m not saying we’re going straight back up to the $39 levels of the past, there’s definitely a path to filling in some of that gap left behind during Chewy’s previous drop.

3. Navigating Market Conditions: Chewy Stands Out

Let’s be real—today isn’t the easiest market to find long opportunities. The SPY has been steadily down, and it’s been a challenge for most stocks to buck that trend. But Chewy’s relative strength stands out. In a sea of red, $CHWY is showing some green, and that’s the kind of resilience we want to see in our trades.

4. The Game Plan: Watching for the Breakout

Here’s the game plan: keep an eye on that $30 level. A breakout above could be our ticket to ride further up, especially if we see a strong volume push. For those of you watching VWAP, look for those key support zones to hold. As always, manage your risk and be ready to adapt if the market throws us a curveball.

Chewy’s earnings reaction has given us a great setup in a tough market. Let’s see how this one plays out—whether it’s a quick scalp or a longer ride, the opportunity is clear.

Happy trading, and see you in the trading room!